FxWirePro Call Review: Soybean to remain in bear market in coming years

Soybean has reached all of our bearish targets amid trade tensions between the United States and China, which happens to be the biggest consumer of Soybeans and biggest importer of U.S. Soybeans. You can check the call here, https://www.econotimes.com/FxWirePro-Call-Review-Soybean-short-target-further-extended-as-sell-off-intensifies-on-trade-tensions-and-bumper-production-1371629

At this point, we are not ruling out a temporary bounce back in Soybean prices, however, in this review, we would like to upgrade our outlook for the Soybean from bearish to very bearish over the coming years. The recently published numbers from the United States’ Department of Agriculture suggested bumper crop production this year. The United States is expected to produce 116.5 million metric tons of Soybean this year, just 3 million shy of its record production. Brazil is expected to produce 117 million metric tons, which is a record too. While this is a key bearish factor, but China’s decision to produce more at home, thanks to the trade tensions are likely to weigh more on the price than any other factor over the coming years.

Over the coming years, based on our calculations at FxWirePro, we see Soybean price hit as low as 500 cents per bushel.